Oregon Foreclosure Laws

An Oregon foreclosure can be administered either by judicial or non-judicial means. Typical foreclosure timeline is about 5 months. Since the state permits judicial and non-judicial foreclosures, a Power of Sale clause in the loan document determines if the foreclosure is to be done in-court or out-of-court. Under Oregon’s foreclosure laws, the borrower can prevent a foreclosure sale by making a full payment of the total arrears plus any applicable costs. Payment should be made up to 5 days before the auction occurs.

Judicial And Non-Judicial Foreclosure Information

To satisfy the borrower’s debt, the lender can foreclose the property in question. For non-judicial process, the lender is not required to file a complaint in court. An out-of-court foreclosure applies when the Power of Sale clause is signed by the borrower in the mortgage agreement. This means that the borrower is aware of the consequence when the terms in the loan agreement is not met such as defaulted payments. This provision authorizes the lender to initiate a foreclosure on the homeowner’s property without filing for lawsuit. To set off the foreclosure process, the lender is required to send a notice of default to the homeowner at least 4 months prior to the date of the sale.

Under Oregon foreclosure laws, the court has the final judgment for judicial foreclosures. If the loan document does not contain the power of sale clause, the lender can pursue a judicial foreclosure by filing a complaint against the defaulted borrower. This legal action is known as lis pendens which documents the impending foreclosure on a distressed property. Once the court finds adequate evidence to foreclosure a property and the borrower fails to cure debt, the property is put up for auction.

After-sale statutory right of redemption is applicable for judicial foreclosures. This would allow a homeowner whose property has been foreclosed to reclaim property ownership by paying off the total unpaid loan plus applicable costs. Redemption period is 180 days. To be eligible for redemption, the borrower needs to submit a notice of intention to the Sheriff.

Deficiency judgment may be obtained by lenders in the event that a property is sold for less than the amount of mortgage loan. When deficiency is granted to the lender, the borrower has to pay for the difference between the amount of the property sold in the auction and the amount of the original loan.

Notice Of Sale Oregon

Oregon foreclosure laws requires that a Notice of Sale should be published in a local weekly newspaper. The Notice should be in circulation for at least 4 weeks prior to the auction. At the foreclosure sale or public auction, the property will be auctioned off to the highest bidder.